BILL ANALYSIS

C.S.H.B. 3132

By: Parker

Investments & Financial Services

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Interested parties note that under current law any municipal adviser wishing to advise a municipality regarding the issuance of bonds has to be registered as a dealer or investment adviser in accordance with certain provisions of The Securities Act. The parties assert, however, that due to recent changes in federal law a separate category specifically for municipal adviser registrants has been created and, as a result, municipal advisers are now required to register as both a state investment adviser and as a municipal adviser. C.S.H.B. 3132 seeks to address this issue.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 3132 amends the Government Code to add registration with the U.S. Securities and Exchange Commission as a municipal adviser under the federal Securities Exchange Act of 1934 as an alternative condition of eligibility to be a financial adviser or an investment adviser for purposes of the issuance of public securities and related matters.

EFFECTIVE DATE

September 1, 2015.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 3132 differs from the original in minor or nonsubstantive ways by conforming to certain bill drafting conventions.